What is FIRE?
FIRE stands for Financial Independence, Retire Early. The core idea is to save and invest aggressively early in life so that your investment portfolio generates enough passive income to cover all living expenses — allowing you to retire decades before the traditional retirement age of 60.
The FIRE number is typically calculated as 25x your annual expenses — based on the 4% safe withdrawal rule, which means you can safely withdraw 4% of your corpus each year without depleting it over a 30-year period.
What is the 4% rule?▼
The 4% rule states that if you withdraw 4% of your investment portfolio each year, you have a high probability of your money lasting 30+ years. If your annual expenses are ₹6 lakhs, your FIRE number is ₹6L × 25 = ₹1.5 Crore.
How much should I save for FIRE in India?▼
If your monthly expenses are ₹50,000 (₹6L/year), you need ₹1.5 Crore. If expenses are ₹1L/month (₹12L/year), you need ₹3 Crore. Investing ₹30,000/month at 12% CAGR for 15 years creates ~₹1.5 Crore.
What is Lean FIRE vs Fat FIRE?▼
Lean FIRE is early retirement with a minimalist lifestyle (low expenses). Fat FIRE means retiring with a large corpus for a comfortable lifestyle. Coast FIRE means saving enough early that you no longer need to contribute — your investments grow on their own.
Is FIRE realistic in India?▼
Very much so — India's lower cost of living makes FIRE more achievable. A corpus of ₹2–3 Crore invested in diversified equity funds can generate ₹6–10L per year in returns, sufficient for comfortable living in many Indian cities.